Renting a car while travelling: does your insurance cover you?

What does your insurance contract say?

If your contract includes Q.E.F. 27, your coverage includes damage to a rented vehicle... but only in Canada and the United States. This includes Hawaii and Alaska. However, some U.S. territories, Puerto Rico, Guam and the Virgin Islands (St. Thomas, St. John and St. Croix), are excluded.

Perfect for a getaway to Maine or a road trip all the way to the Maritimes!

But beware... If your contract includes a high deductible or exclusions, these will also apply to your rental car. A quick look at your contract before you leave can save you from major headaches!

If you don't have Q.E.F. 27, ask about it. Adding it to your contract costs a lot less than insurance purchased at your destination. But if you’re travelling outside North America, you'll need to explore other options.

What about civil liability?

Yes, it's included in your insurance contract, but it's often not sufficient if you’re in the U.S., where lawsuits can cost a fortune.

If you want to travel with peace of mind, consider increasing your coverage to $2 million.

Credit cards: practical, but not always sufficient

Many credit cards offer car rental insurance abroad. This option may sound tempting, but better read the small print. Conditions vary from one card to the next.

Here’s what you need to check:

• Activation - If you want to take advantage of the coverage, you have to pay for the entire rental with your card.
• Coverage - Typically, only damage to the vehicle (accident or theft) is covered, but not civil liability.
• Duration - Coverage is usually limited to 30 days. Beyond that, you’ll need to find other insurance coverage or turn to public transportation.
• Excluded vehicles - You can forget about luxury cars, large SUVs and pickup trucks as they’re often excluded. Check before you book.
• Excluded destinations - Coverage is not available in all countries. Be sure to check the exclusions before you book.
• Deductible and restrictions - Sometimes the deductible is far too high or the conditions are strict. And if someone else takes the wheel, the insurance may not apply.

A word of advice: Give the credit card company a call before you set out and ask for a document that confirms your coverage.

Rental company insurance: convenient yes, but pricey

After a long and exhausting flight, rental companies overload you with insurance offers. With fatigue set in, it’s tempting to say yes, but at what price?

As convenient as it may be, this coverage is more expensive than other options. What's more, some policies come with exclusions that could leave you in a difficult situation if something goes wrong.

Generally, three types of coverage are offered:

• Collision insurance with no deductible, which covers damage to the vehicle, except in cases of negligence (such as driving under the influence or on unpaved roads).
• Civil liability insurance, which covers you in the event of damage caused to others. In some countries, basic coverage is included in the rental price, but it could be insufficient.
• Theft insurance covers the theft of the vehicle, but not your luggage left inside. Check whether your home insurance would cover the theft of your luggage.

Important questions

Take the time to ask the following questions to the rental company staff:

• How much does it cost? These coverages can add $10 to $50 per day to the bill. That adds up fast!
• What's excluded? Tires, windshield, chassis... these are often not covered.
• Are there any hidden fees? Even with insurance, some companies charge a deductible in the event of damage.
• Is coverage mandatory? In some countries, you won’t have a choice.
• Did I read the fine print? Not exactly exciting, but well worth it.

Our advice: Rental agency insurance is convenient, but expensive and limited. Before you say yes, compare your options.

Travel insurance: a comprehensive solution for peace of mind

For total peace of mind, consider travel insurance that includes car rental. It can cover:

• Damage to the vehicle
• Civil liability
• Medical expenses in case of an accident
• Roadside assistance in case of a breakdown

Tip: Check if your current travel insurance offers these coverages, or if you need to add an endorsement.

Explore all avenues

Before you hit the road, make sure you understand your coverage choices.

• Find out about local car insurance requirements.
• Check the coverage offered by your own auto insurance.
• Call your credit card company for coverage details.
• Carefully read the rental company's insurance conditions carefully.
• Shop around for comprehensive travel insurance so you can avoid the unexpected.

Questions about travel or auto insurance?

Call your L'Unique broker for advice on Q.E.F. 27. Because travelling should be relaxing, not stressful!